This is according to data from equity release advisory service, Equity Release Supermarket, which reported a 123% boost in house purchases along with a 17% rise in customers buying second homes in the first three months of 2021.

There was also a very noticeable uplift in customers using the cash released from their home to gift funds to their children – it climbed by 59% in Q1 2021 compared the same period in 2020.

Equity Release Supermarket suggested theses shifts could have been caused by a number of factors but the most likely was the continued support parents provided for their children, particularly those affected by the pandemic.

Indeed, with many younger people striving to get on the property ladder, especially given the benefits of the stamp duty holiday, which is available until the end of June this year, parents were using their equity release funds to help support their children’s homeownership goals.

Mark Gregory, founder and CEO at Equity Release Supermarket said: “Findings on the usage of funds is probably as you would expect given the advantages of the stamp duty holiday, helping those looking to get on, or move up the property ladder.

“Whilst the government-backed mortgage scheme, which launched mid-April, offering first time buyers 95% LTV mortgages is welcomed, even a modest £10,000 deposit on a £200,000 property is a significant amount of money for those who have been unable to start saving.

“This also doesn’t help or support those who already own a property and are looking to upscale or move up the ladder. Rightmove reported a 2.1% increase in house prices in April, up to a record house price average of £327,797 – hence, the shortage of property on the market is really driving up these prices.”

Increase in sales in London

Equity Release Supermarket also noted a vast rise in sales across the London area. Their average value of the amount borrowed in the Capital increased by 39% year-on-year, whilst the average case increased by 33%.

What’s more, sales across the southern region of the UK witnessed a notable rise in comparison to last year. London, the South East and the South West all accounted for 52% of sales in Q1 of this year, as well as 64% by value – an increase of 11% compared to the same period in 2020.

Consumer confidence

Gregory added: “We’re seeing a resurgence in consumer confidence return to the ‘core’ regions of the UK, with the Stamp Duty holiday and easing of lockdown restrictions playing a key part in this heightened recovery.

“High-net-worth property owners taking advantage of low interest rates and the flexibility that many lifetime mortgages now offer, such as fixed term early repayments charges, have also driven the higher case values reported across London.”

In comparison to Q1 last year, utilising money borrowed to repay debts fell by 41%. Other reported usage decreases were new car purchases, falling by 57% and holidays, which dropped by 70%, mainly due to the comfort consumers are taking with having more money in their pockets, plus the travel restrictions which halted holiday spend.

Gregory said: “As a business, Equity Release Supermarket has continued to grow in Q1. Our level of enquiries and interest grew by 21% YOY and the value of applications increased by 15%.

“March alone also saw a sharp rise of 47% in the level of enquiries and interest, plus the value of applications rose by 22%. What’s more our revenue was the equivalent to that reported in 2020.

“Our business performance as a whole is testament to the quality of our advice, our dynamic and talented team of advisers and our forward-thinking approach. Despite being in lockdown throughout Q1 of this year, unlike last year, we have still grown and reacted quickly to our changing customer needs.”